Transmission and Distribution Utility Charges, also known as Texas TDU Delivery Charges, impact your monthly electric bill. Delivery rates change every March (usually down) and every September (usually up).
You may open up your electricity bill and notice new line items, or a different charge compared to the prior month. Most of the time, it’s small changes in the delivery rates, but these can add up. There’s no way to avoid these changes, but it helps if you understand what’s going on.
What are the Current Texas TDU Delivery Charges?
If you’re searching for Oncor Delivery Charges or Centerpoint Delivery Charges? Look no further. Because below are the current monthly TDU Delivery Charges for all 5 of the deregulated Texas markets. (Current as of 3/1/2021)
|Utility Delivery Company||Monthly Charge||Charges per kWh|
|AEP TX Central||$4.27||3.7458¢|
|AEP TX North||$3.57||3.0078¢|
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What are TDU Delivery Charges?
TDU delivery charges pay for the maintenance of the poles and wires that deliver electricity to your home and for the meters that measure it. The TDU delivery rates are regulated. The Public Utility Commission of Texas (PUCT) approves all utility delivery rates.
And these delivery rates are passed through to the customer without markup. They are included in your bill from your retail electricity provider (REP).
These TDU delivery charges may show as a line item on your bill, or may be “bundled” in with an energy rate.
I Thought I Had a Fixed Rate? Why did My Price Go Up?
This is a common complaint of residential electricity customers in Texas — “I signed up for a fixed rate, and then it changed!”
Here’s the real deal.
Whether you have a “bundled rate” (one rate for both energy and delivery) or an “unbundled rate” (a fixed rate for energy plus delivery rates passed through at cost), when the delivery rate changes, the overall price you pay for electricity will change.
Most of the confusion is over bundled rates.
The fine print on the electricity facts label usually says something like this:
“The price you pay each month will reflect the transmission and distribution utility charges in effect for your monthly billing cycle.”
Or it may include something like this:
“**TDU Delivery Charges are subject to change.”
In English: When the TDU Delivery Charge changes, your price will change.
If you have a bundled rate, you will typically see a new line item on your bill when delivery charges change, with a description like “Centerpoint Energy Additional Charge.”
If you have an unbundled rate, the delivery rate per kilowatt hour will simply change on your bill, with no additional line items.
When Do TDU Delivery Rates Change?
TDU delivery rates change officially twice a year, March 1 and September 1.
The Public Utility Commission of Texas (PUCT) must approve delivery charges.
Just know that if delivery rate changes occur and they impact your bill, your supplier can provide the details of the change.
Why Do TDU Charges Change?
Each of the regulated utility companies is entitled to collect 100% of their costs from their rate payers. And they are guaranteed to receive a rate of return. That’s because they provide a critical public service: delivering electricity, maintaining the infrastructure, and responding in case of an emergency.
The Public Utility Commission of Texas reviews and approves each utility’s rate case.
The items in each rate case may include costs from hurricane or storm recovery, upgraded service equipment, or bond issues and financing costs for system upgrades.
How do TDU Delivery Rates Change Over Time?
The TDU delivery rates listed on this page show the current rates. But if you want to know how delivery rates have changed over time, you can see that too.
On each of the utility pages, you can see the TDU rate history for delivery charges.
What Makes Up the TDU Delivery Charges?
Delivery charges are made up of multiple components:
- Energy Efficiency Cost Recovery Factor (EECRF)
- Transmission Cost Recovery Factor (Rider TCRF)
- Accumulated Deferred Federal Income Tax (ADFIT) Credit
- Transition Charges (Schedule TC2, TC3, SRC, and TC5)
Most REPs summarize these TDU delivery charges on your monthly electric bills. You will not see this level of detail on your monthly residential bill.
If you’re wondering “why are my TDU rates so high” you can take a look at the rate cases that are filed. The PUCT maintains official copies of the tariff documents on their web site. These tariff documents are 200+ pages long and are a proven cure for insomnia.
TDU Delivery Charges for Commercial Customers
Delivery charges for commercial customers vary based on the type of meter, whether you pay demand charges, and your level of demand.
You can contact your delivery company to find out your tariff. Or contact your electricity supplier to ask about your delivery charges. It’s very difficult to get changed to a different commercial delivery tariff.
So, the best way to control your electricity bill for your business is to:
- Lock in a commercial electricity rate for your business. Shop online to compare business electricity rates.
- Manage your peak demand to lower your demand charges.
Shop for Electricity Rate to Control Your Bill
While you can’t control the delivery rates on your bill, you have the power to choose your electricity supplier. You can control the price you pay for every kilowatt hour of electricity.
We created ElectricityPlans to help consumers make sense of their electricity bill. We only work with reputable providers. And, our staff carefully reviews the fine print on each plan. Plus, if you need more help, we can shop for you with our free PlanScan feature.
Want more info about shopping for electricity in Texas? Read our Definitive Guide to Electricity Shopping.